CITIGROUP ANNOUNCES $7 BILLION FINE

As expected, Citigroup has announced a $7 billion fine and
settlement over investigation into pre-crisis mortgage practices.
Here's the press release:

Citigroup today announced that it has reached an agreement to
settle the ongoing investigation of the Residential
Mortgage-Backed Securities (RMBS) Working Group, part of the
Financial Fraud Enforcement Task Force. Today’s agreement
resolves actual and potential civil claims by the U.S. Department
of Justice (the DOJ), several state attorneys general (State
AGs), and the Federal Deposit Insurance Corporation (the FDIC)
relating to RMBS and collateralized debt obligations (CDOs)
issued, structured or underwritten by Citi between 2003 and 2008.

Under the terms of the settlement, Citigroup will pay a total of
$4.5 billion in cash and provide $2.5 billion in consumer relief.
The cash portion consists of a $4 billion civil monetary payment
to the DOJ and $500 million in compensatory payments to the State
AGs and the FDIC. The consumer relief will be in the form of
financing provided for the construction and preservation of
affordable multifamily rental housing, principal reduction and
forbearance for residential loans, as well as other direct
consumer benefits from various relief programs. Citigroup has
agreed to provide the consumer relief by the end of 2018.

Michael Corbat, Chief Executive Officer of Citigroup, said, “The
comprehensive settlement announced today with the U.S. Department
of Justice, state attorneys general, and the FDIC resolves all
pending civil investigations related to our legacy RMBS and CDO
underwriting, structuring and issuance activities. We also have
now resolved substantially all of our legacy RMBS and CDO
litigation. We believe that this settlement is in the best
interests of our shareholders, and allows us to move forward and
to focus on the future, not the past.”

In connection with the settlement, Citigroup will take a charge
of approximately $3.8 billion pre-tax in the second quarter of
2014. Citigroup will issue its second quarter results via press
release at approximately 8 a.m. today.